AVJennings says on track to hit A$40m profit before tax for FY2015

AUSTRALIA'S leading residential-property development company, AVJennings, said on Wednesday it is on track to deliver profit before tax for FY2015 in the order of A$40 million (S$42.3 million) or higher.

This is despite the impact of recent adverse weather in New South Wales and Queensland, which will delay a significant number of settlements into early FY2016.

Peter Summers, its managing director, said this in a profit guidance filing to Singapore Exchange.

He said the estimate is based on the information currently available.

In its fiscal 2014, profit before tax was A$27 million.

"The performance reflects both AVJennings' strategy to significantly increase its production levels, a process begun in late calendar 2012, and the continuing strong market conditions, particularly in New South Wales, Queensland and Auckland, New Zealand."

The estimate rides on the fact that the company has continued to perform strongly during FY2015 with contract signings and work in progress at their highest levels in eight years.